@ Doc...I believe I read that the rights are non-transferable, so I am under the impression that option 3 is off the table. Also, you will have the opportunity to buy additional shares (above the number of rights you are entitled to). I believe this is a good opportunity to dollar cost average down even more. The only question is, do you believe that the reason for the offering is for the reasons stated my the company (to better position the company) or is it just a ploy to save a floundering company? I believe it is the former.
"The rights offering is proposed to be made through the pro rata distribution of non-transferable subscription rights to purchase, in the aggregate, up to 34,000,000 shares of the company’s common stock at a subscription price of $1.00 per share, to shareholders and certain warrant holders of the company on the record date of August 10, 2017. The proposed rights offering will also include an over-subscription right, which will entitle a rights holder who exercises all of its basic subscription right in full the opportunity to purchase additional shares of common stock up to the amount of its basic subscription right, subject to the availability and pro rata allocation of shares among rights holders exercising their over-subscription right."
Another point to consider it that the company guaranteeing the offering, Puissance Capital Management, has committed to purchasing all unsubscribed shares after everyone excerises their rights. (up to 40% share ownership). The more people that take option 2 and let their rights expire, the stronger their (Puissance) position will be.
I also believe that option 2 is not the right move because that ensures the dilution. Option one offsets the dilution. If anyone can confirm or correct my assumption it would be appreciated.
